What is the new tax withholding about?
Garpa S.A., as a Payment Service Provider, has been designated by the Tax Authority of the Province of Tucumán as a withholding agent for the Gross Income Tax (Impuesto sobre los Ingresos Brutos). This means we are required to withhold a small percentage of certain deposits you receive.
Does this apply to all deposits?
No, only deposits made by third parties (other people) are affected. If you receive Argentine pesos into your account from someone else, the applicable tax rate will be withheld.
What about transfers I make to myself?
Deposits you make to yourself — from your own accounts — will not be affected.
The tax only applies when someone else sends funds to your CVU account.
When does this start?
The withholding applies starting from May 1st.
How much will be withheld?
The tax rate we apply is determined by the official registry (padrón) published by the Tax Authority of Tucumán.
This registry is updated monthly and assigns different rates based on specific criteria. The applicable rate can vary depending on your profile, but it can be as high as 5.5%.
How will I know if a deposit was subject to withholding?
You’ll see the withholding amount reflected directly in your transaction history when a third-party deposit is credited to your account.